cost sheet report on Proctel & Gamble. Consist of 1.Introduction 2.Research and methodology 3.pv ratio,cash flow, mean,median etc.

1. P&G
Procter&Gamble
SUBMITTED FOR PARTIAL FULFILMENT OF
AWARD OF POST GRADUATE DIPLOMA IN
MANAGEMENT
Prepared by
GOUTAM CHOUDHARY
under guidance of
Prof. Manju Lamba
PGDM (13-15)
I.T.S., Mohan Nagar
SECTION (A)
Ghaziabad (U.P)
I.T.S-Management and IT Institute
Mohan Nagar, Ghaziabad

2. Declaration Certificate
Certified that Goutam choudhary IS carried out the Dissertation
work presented in this thesis entitled “PROCTEL&GAMBLE:
Exploring for the award of PGDM from Institute of Technology and
Science under my supervision. The dissertation embodies result of
original work and studies carried out by student himself and the
contents of the thesis do not form the basis for the award of any
other degree to the candidate or to anybody else.
Prof. Manju Lamba

3. Acknowledgement
Any accomplishment requires the effort of many people and this work is no
different. I have been fortunate enough to get the help and guidance from
many people. It is a pleasure to acknowledge them though still it is inadequate
appreciation for their contribution.
I would not have completed this journey without the help, guidance and
support of certain people who acted as guides and friends along the way. we
would like to express my deepest and sincere thanks to my faculty guide Prof.
Manju Lamba for her invaluable guidance and help. The project could not be
complete without the support and guidance.
we are also thankful to all my friends and colleagues for cooperating with me
at every stage of the project. They acted as continuous source of inspiration
and motivated me throughout the duration of the project helping me a lot in
completion of this project.
Submitted with regards
GOUTAM CHOUDHARY
SEC-A
COST ACCOUNTIG
PGDM (13-15)

4. Table of Contents
Declaration Certificate
Abstract
Acknowledgement
Table of Contents
List of Tables & Figures
1. Chapter -1
1.0.Introduction …………………………………………
1.1.Background……………………………………………..
2. Chapter – 2
2.0. Data Analysis & Interpretation…………………………..
3. Chapter – 3
3.0.Conclusion………………………………………………

5. BACKGROUND
HE PROCTER AND GAMBLE COMPANY
HEADQUATER IN CICINNATI,OHIO,USA
INTRODUCTION
Procter & Gamble Co.
(P&G, NYSE: PG) is a Fortune 500, American multinational corporation
headquartered in Cincinnati, Ohio, that manufactures a wide range of
consumer goods. As of 2008, P&G is the 8th largest corporation in the world
by market capitalization and 14th largest US company by profit.
The board of directors of Procter & Gamble currently has thirteen members:
Alan Lafley
Robert A. McDonald
Charles Lee,
Ralph Snyderman M.D.
Margaret Whitman
W. J. McNerney Jr.
Lynn Martin
Management and staff
Johnathan Rodgers
Ernesto Zedillo
Scott Cook
Rajat Gupta(only indian)
Patricia Woertz
Kenneth Chenault.
.

6. .
HISTORY
“William Procter”, a candlemaker, and “James Gamble”, a soapmaker,
immigrants from England and Ireland, respectively, who had settled earlier in
Cincinnati, who met as they both married sisters, Olivia and Elizabeth
Norris,formed the company initially. Alexander Norris, their father-in law,
called a meeting in which he persuaded his new sons-in-law to become
business partners.
On October 31, 1837, as a result of the suggestion, Procter & Gamble was
born.. In 1859, sales reached one million dollars. By this point, approximately
eighty employees worked for Procter & Gamble. During the American Civil
War, the company won contracts to supply the Union Army with soap and
candles.
in 1859, sales reached one million dollars. By this point, approximately eighty
employees worked for Procter & Gamble. During the American Civil War, the
company won contracts to supply the Union Army with soap and candles.
In addition to the increased profits experienced during the war, the military
contracts introduced soldiers from all over the country to Procter &
Gamble's products.
In the 1880s, Procter & Gamble began to market a new product, an
inexpensive soap that floats in water. The company called the soap Ivory.In
addition to the increased profits experienced during the war, the military
contracts introduced soldiers from all over the country to Procter &
Gamble's products.
Beauty (33% of sales, 37% of net income):The Beauty GBU includes all hair
and skin products, medications, razors, electric shavers, and batteries. Proctor
& Gamble's global market share in blades and razors is 70%, primarily
centered around its Mach3, Fusion, Venus, and Gillette brands.

7. Health and Well-Being (23% of sales, 25% of net income):The Health and
Well-Being GBU provides oral care, feminine health, pharmaceuticals, snacks,
coffee,and pet care products.oral care, the company has the number two
market share position at 20% globally.In potato chips and coffee, the company
holds a market share of approximately 10% and 33%.
Household Care (46% of sales, 42% of net income): The Household Care
GBU manufactures a wide range of products from snack food to laundry
detergent to diapers. The company's baby care market share in 2008
was 29%.Procter & Gamble Co. was the world's top advertiser in 2007,
spending almost $9.4 billion worldwide. The company outspent its largest
competitor, Unilever, the second-highest advertiser, by almost two-to-one
(Unilever spent $5.2 billion).
According to the Nielsen Company, in 2007 P&G spent more on U.S.
advertising than any other company; the $2.62 billion spent by P&G is almost
twice as much as that
spent by General Motors, the next company on the Nielsen list.P&G was
named 2008 Advertiser of the Year by Cannes International Advertising
Festival.
OperationsEffective July 1, 2007, the company's operations are
categorized into three "Global Business Units" with each Global
Business Unit divided into "Business Segments" according to the
company's March 2009 earnings release.Beauty Care Beauty
segmentGrooming segment.
Household Care Baby Care and Family Care segmentFabric Care and Home
Care segmentHealth and Well-Being Health Care segmentSnacks, Coffee, and
Pet Care segment.

8. RESEARCH OBJECTIVES
The following are the objectives1. To study the financial position of the company
2. To apply marginal costing concept on companies financial data.
3. To analyze the company’s financial position before recession and after
recession
4. To find out the magnitude of relationship between sales and profit,
variable cost and profit, and, total cost and profit.

9. RESEARCH METHODOLOGY
NATURE OF RESEARCH
Since source of primary data directly relevant was scare. It was decided that
the analysis had to be secondary data analysis, collected directly from the
Internet, News Paper, & Magazine. This is an exploratory research
SAMPLE COMPANY: ONGC
SAMPLE SIZE: 10 years Balance Sheet, Profit and Loss and Cash Flow
statement of the company.
TIME PERIOD: 20 Days
DATA COLLECTION: Data is collected from secondary sources like
capitaline database, Internet, News paper, & Magazine.
SOFTWARE USED: Microsoft Excel, MS word.
TOOLS: Marginal costing, Mean, Median, Correlation and Regression
analysis
ANALYSIS: The analysis is been done through table, graphs and pie charts

10. CHAPTER -1

11. INTRODUCTION
Proctor & Gamble India
Procter & Gamble Co. (P&G) is an American company based in Cincinnati,
Ohio that manufactures a wide range of consumer goods. In India Proctor &
Gamble has two subsidiaries: P&G Hygiene and Health Care Ltd. and P&G
Home Products Ltd. P&G Hygiene and Health Care Limited is one of India's
fastest growing Fast Moving Consumer Goods Companies with a turnover of
more than Rs. 500 crores. It has in its portfolio famous brands like Vicks &
Whisper. P&G Home Products Limited deals in Fabric Care segment and Hair
Care segment. It has in its kitty global brands such as Ariel and Tide in the
Fabric Care segment, and Head & Shoulders, Pantene, and Rejoice in the Hair
Care segment.
Procter & Gamble's relationship with India started in 1951 when Vicks
Product Inc. India, a branch of Vicks Product Inc. USA entered Indian market.
In 1964, a public limited company, Richardson Hindustan Limited (RHL) was

12. formed which obtained an Industrial License to undertake manufacture of
Menthol and de mentholised peppermint oil and VICKS range of products
such as Vicks VapoRub, Vicks Cough Drops and Vicks Inhaler. In May 1967,
RHL introduced Clearsil, then America's number one pimple cream in Indian
market. In 1979, RHL launches Vicks Action 500 and in 1984 it set up an
Ayurvedic Research Laboratory to address the common ailments of the people
such as cough and cold.
In October 1985, RHL became an affiliate of The Procter & Gamble
Company, USA and its name was changed to Procter & Gamble India. In
1989, Procter & Gamble India launched Whisper - the breakthrough
technology sanitary napkin. In 1991, P&G India launched Ariel detergent. In
1992, The Procter & Gamble Company, US increased its stake in Procter &
Gamble India to 51% and then to 65%. In 1993, Procter & Gamble India
divested the Detergents business to Procter & Gamble Home Products and
started marketing Old Spice Brand of products. In 1999 Procter & Gamble
India Limited changed the name of the
Company to Procter & Gamble Hygiene and Health Care Limited.
P&G Home Products Limited was incorporated as 100% subsidiary of The
Procter & Gamble Company, USA in 1993 and it launched launches Ariel
Super Soaker. In the same year Procter & Gamble India divested the
Detergents business to Procter & Gamble Home Products. In 1995, Procter &
Gamble Home Products entered the Haircare Category with the launch of
Pantene Pro-V shampoo. In 1997 Procter & Gamble Home Products launches
Head & Shoulders shampoo. In 2000, Procter & Gamble Home Products
introduced Tide Detergent Powder - the largest selling detergent in the world.
In 2003, Procter & Gamble Home Products Limited launched Pampers world's number one selling diaper brand.

13. Today, Proctor & Gamble is the second largest FMCG company in India after
Hindustan Lever Limited.
CHAPTER -2

15. year
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
sales
577.24
684.71
567.59
539.64
646.01
774.22
904.45
1,002.88
1,297.41
1,686.78
INTERPRETAION
From the above
graph shows that sales are increasing year by year. Increasing the sales also
increasing revenue. Its show better financial position of the company. But in
year 2006-07 to 2009-10 sales are decreasing.

16. year
revenue growth%
2004-05
0
2005-06
0.289362128
2006-07
-0.153903904
2007-08
-0.096655754
2008-09
0.183698008
2009-10
0.166950426
2010-11
0.143445638
2011-12
0.113988248
2012-13
0.313826459
2013-14
0.309252747
INTERPRETATION
From the above graph revenue growth% are decline as
well as increasing year by year. But in 2006-07 & 2007-8 are shows negative
growth. It shows better financial position of the company.

17. year
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
contribution
116.79
102.34
115.19
103.64
139.74
204.61
230.47
162.84
183.51
217.16
INTERPRETATION
From the above figure contribution is basically that portion
of sales which remains after recovering variables costs and is available
towards fixed costs and profit.In the 2005-06 contribution are low and 200708 contibution are negative. Its show sales are decresing in comprison of
variable costs.

18. 4 Year
P/V Ratio
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
20.23%
14.95%
20.29%
19.21%
21.63%
26.43%
25.48%
16.24%
14.14%
12.87%
INTERPRETATION
P/v ratio indicates the effect on profit for a given change in
the sales. In the year 2009-10 p/v ratio are high &2013-14 is very low ratio .
its shows huge change in profit due to change in sales.

19. 5 Year
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
PBT
127.17
177.79
193.34
145.5
180.56
231.66
233.63
176.75
223.02
286.2
INTERPRETATION
In the above graph profit before tax are increasing year by
year.But in 2007-08 & 2004-05 PBT are decline. It is shows that company has
better financial position. Its mean that company has in strong position.

20. PBT
MARGIN %
6 Year
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
PBT Margin
%
0
0.398049855
0.087462737
-0.247439743
0.240962199
0.283008418
0.008503842
-0.243461884
0.261782178
0.283292978

21. INTERPRETATION
In the above figure pat margin % are increasing in the
year of 2005-06 but its negative in 2007-08 & 2011-12 . then its decline year
by year.its shows company profit after tax are decresing year after year.
7 Year
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
PAT
-169.84
-412.44
-196.27
-175.04
-132.84
-117.66
-117.81
-145.64
-116.49
-123.85
PROFIT AFTER TAX

22. INTERPRETATION
From the above graph profit after tax is the actual profit
of the company after deducting all the expenses & taxes.it increasing as well
as decreasing year by year.It is shows better financial position for the
company.
PAT MARGIN %

23. Year
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
PAT Margin
%
0
1.428403203
-0.524124721
-0.108167321
-0.241087751
-0.114272809
0.00127486
0.236227824
-0.200151057
0.063181389
INTERPRETATION
In above figure shows pat margin % are very high in the
year 2005-06 are very high but in the 2007-08,2008-09,2009-10&2012-13 its
show negative &2010-11&2011-2012 its start increasing but in 2012-13 its
again negative.
GROSS PROFIT

24. year
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
Gross Profit
599.18
772.56
653.66
590.48
698.95
815.64
932.64
1038.95
1365
1787.13
INTERPRETATION
In the above figure gross profit are increasing year after
year .It shows company direct income more than direct expenses.its show
better financial position of the company and profit continusoly year after year.

25. ANALYSIS OF MEAN & MEDIAN
Before
Recession
20003-04
2004-05
2005-06
2006-07
577.24
684.71
567.59
539.64
460.45
582.37
452.4
436
116.79
102.34
115.19
103.64
11.56
12.4
7.92
8.98
127.17
177.79
193.34
145.5
-169.84
-412.44
-196.27
-175.04
0.202325
0.149464737
0.202946
0.192054
57.13584
82.96271253
39.0252
46.75769
520.1042
601.7472875
528.5648
492.8823

26. Recession
2007-08
2008-09
646.01
774.22
904.45
506.27
569.61
673.98
139.74
204.61
230.47
12.12
14.37
25.03
180.56
231.66
233.63
-132.84
-117.66
-117.81
0.216312
0.264278887
0.254818
56.03006
54.3743776
98.22703
589.9799
719.8456224
806.223

27. Af
ter
Recession
2009-10
2010-11
2011-12
1,002.88
1,297.41
1,686.78
840.04
1113.9
1469.62
162.84
183.51
217.16
22.16
28.08
31.31
176.75
223.02
286.2
-145.64
-116.49
-123.85
0.162372
0.141443337
0.128742
136.4764
198.5247278
243.1989
866.4036
1098.885272
1443.581

28. CORELATION
&PROFIT
YEAR
2204-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
BETWEEN
P/V RATIO
20.23%
14.95%
20.29%
19.21%
21.63%
26.43%
25.48%
16.24%
14.14%
12.87%
P/V
RATIO
PROFIT after
tax
-169.8
-412.4
-196.3
-175
-132.8
-117.7
-117.8
-145.6
-116.5
-123.9
0.313
INTERPRETATION
Correlation b/w sales and profit is 0.313 its shows
highly positive correlation which means sales and profit increasing year to year.

29. CORELATION
&PROFIT
YEAR
2004-05
2005-06
2006-07
2007-08
2008-09
2009-10
2010-11
2011-12
2012-13
2013-14
sales
577.24
684.71
792.18
899.65
1007.1
1114.6
1222.1
1329.5
1437
1544.5
BETWEEN
SALES
PROFIT after tax
-169.84
-412.44
-196.27
-175.04
-132.84
-117.66
-117.81
-145.64
-116.49
-123.85
0.600536
INTERPRETATION
Correlation b/w p/v ratio & profit is 0.600536. it is a
positive correlation. It shows p/v ratio and profit are increasing.

30. CONCLUSION
The company had been consistently making profit during the last 5 years,
mainly due to its new offers to the customers ,its produces regularly new
products. Production of health care and skin care cosmatics increases regularly
which are more demanding in the market and provide satisfactions to the its
potential customers as well as new ones.
Procter & Gamble has built an organisation with an innovative culture.
Everybody can contribute to new product development either through research
and development or through their focus, energy and commitment to their role.
This approach to innovation is not new. For example, Procter & Gamble’s
dedication to innovation led to the development of Flash, a revolutionary
brand for its time. Since its launch many hundreds of innovations now enable
it to cater for many more situations within the household much more
efficiently. Similarly P&G created the disposable nappy business by
introducing Pampers.
In a fast-changing world an innovative culture helps an organisation
constantly move forward. Having an innovative culture has actively helped
Procter & Gamble develop and transfer technologies and bring new products
to market. Creating innovations that give people products which make their
lives easier and better is what creates a competitive advantage for P&G. And
is what has helped P&G become the successful global business it is today.